Hong Kong Banks Cast Pall Over Property by Raising Rates
- Moves come after HKMA ups benchmark rate, following U.S. Fed
- HSBC, Hang Seng, Standard Chartered all increase lending costs
This article is for subscribers only.
Hong Kong banks began closing the chapter on a decade of ultra-low borrowing costs, casting a pall over a property rally that made the city one of the world’s most expensive places to buy a home.
HSBC Holdings Plc, Standard Chartered Plc and Hang Seng Bank Ltd. are among banks that boosted their best lending rates on Thursday, hours after the Hong Kong Monetary Authority raised its benchmark interest rate by 25 basis points, in line with the U.S. Federal Reserve. The increases in the prime rates, effective Friday, are the first since March 2006.